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First National Bank Recently Purchased a T-Bill Futures Contract to Hedge

Question 55

Multiple Choice

First National Bank recently purchased a T-bill futures contract to hedge a risk position at the bank. If the price of the futures contract is increasing,


A) First National is "gaining."
B) First National is "losing."
C) First National is neither "gaining" nor "losing."
D) First National's risk exposure is increasing.
E) both b and d

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